Rent-back or not

[Jessica Warrick]

We’re under contract for our second rental property. The seller is an old man who needs a week in the house after closing before he moves into his retirement home. Our realtor just wants to include an addendum in the contract to alloW him to occupy after closing. I’m considering a rent back but I don’t necessarily need the rent from him but we don’t want the liability or potential damages of him being in the home after closing. What do you all recommend when considering how to handle seller occupancy after closing?

[Nathan Gesner]

Quote from @Jessica Warrick:

We’re under contract for our second rental property. The seller is an old man who needs a week in the house after closing before he moves into his retirement home. Our realtor just wants to include an addendum in the contract to alloW him to occupy after closing. I’m considering a rent back but I don’t necessarily need the rent from him but we don’t want the liability or potential damages of him being in the home after closing. What do you all recommend when considering how to handle seller occupancy after closing?

This happens all the time and the risk is extremely negligible, particularly with an old man going into a retirement home. Have a good lease that protects you if anything goes wrong. Charge him market rate or $1, either is fine. Just protect yourself with a lease.